Statement of Purpose

The main purpose of our coffee shop will be to provide a complete, high quality specialty coffee
experience for those searching for something that is rapidly becoming popular among coffee
drinkers in the cities.

At Chapter Coffee, we will provide the visitors a totally new style of coffeehouse - one offering a
uniquely flavourful coffee drink complimented with bakery items and as well as books, sound
proof cabins and a comfortable, upscale environment to socialize, relax, work and study.

We will provide a reasonable venture for the customers, one that will encourage them to return
on many occasions and promote our products and services that will provide a chance of being
discovered by prospective customers.

A well-trained and dedicated staff will contribute to enhance day to day productivity. The proper
trainings and instructions would be provided to new employees by senior employees to maintain
quality service.

1
ACKNOWLEDGEMENT

This business plan is prepared for the partial fulfillment of requirement of graduate level degree
of “Master in Business Administration’’for the course Business Development Plan.

First and foremost, we would like to express our sincere gratitude to our supervisor, Mr.
SohanBabuKhatri and Mr. UgenGautam from Ace Institute of Management for their continuous
support, guidance, reference materials and valuable advice during preparation of the Business
plan. It would not have been possible to complete Business development plan without the
endless support and help provided by them.

Similarly, we wish to express our gratitude to all those who helped us in one way or the other
throughout our business development plan, as well as with the completion of the report.

2
TABLE OF CONTENT

COVER PAGE
STATEMENT OF PURPOSE 1
ACKNOWLEGMENT 2
TABLE OF CONTENTS 3-5
LIST OF TABLES 6
LIST OF FIGURE 7
EXECUTIVE SUMMARY 8
BUSINESS HIGHLIGHTS 9-10

CHAPTER 1

INTRODUCTION……………………………………………………………......................11-16

1.1 Coffee Overview in Nepal………………………………………………………..……11

1.2 Company Overview……………………………………………………………………12
1.3 Vision…………………………………………………………………………………..13
1.4 Mission………………………………………………………………………………....13
1.5 Values……………………………………………………………………………..........13
1.6 Objectives………………………………………………………………………………14
1.7 Building Blocks of Business Model………………………………………………....15-16

CHAPTER 2: PRODUCT/ SERVICE DESCRIPTION…………………………………17-21

2.1 Product Description……………………………………………………………………..17

2.2 Product Attributes and benefits to the consumer……………………………………..17-18
2.3Research and Development efforts and background…………………………………….18
2.4 Costing and Pricing Basis…………………………………………………………….18-19
2.5 Service Production process……………………………………………………….......19-20
2.6Quality assurance and control…………………………………………………….......20-21
2.7Sourcing of raw materials and supplies………………………………………………….21

3
CHAPTER 3: INDUSTRY AND MARKET ANALYSIS…………………………...…...22-28

3.1 Industry Structure and Market Characteristics……………………………………….22

3.2PESTLE Analysis…………………………………………………………………….22-24
3.3 Michael Porter’s Five Forces Analysis……………………………………………….25-26
3.4 Competitor Analysis………………………………………………………………….26-27
3.5 Consumer and Demand Analysis…………………………………………………….27-28

CHAPTER 4: BUSINESS STRATEGY………………………………………..………….29-31

4.1 SWOT Analysis….........................................................................................................29-30
4.2 Business strategy…………………………………………………………………...…30-31

CHAPTER 5: MARKETING PLAN………………………………………………………32-37

5.1 Marketing Objective and goals………..……………………………………………….32

5.2Consumer Analysis…………………………………………………………………….33
5.3Marketing and Growth Strategy…………………………………………………........33-34
5.4 Marketing Mix – 7P’s…………………………………………………………………34-36
5.5 Sales Strategies, Management and Techniques……………………………………….36-37

CHAPTER 6: PRODUCTION AND OPERATIONAL PLAN…………………………..38-43

6.1Location, Premises…………………………………………………………………….38
6.2 Infrastructure Buildup and facilities ……………………………………...…………..38-39
6.3 Time Plan/ Work Schedule……………………………………………………………39
6.4 Production/ Operation Process………………………………………………..............39-40
6.5 Supply Chain Management…………………………………………………………....41
6.6 Order Processing and Inventory control……………………………………………….41
6.7 Quality Assurance and Control……………………………………………………….41-42
6.8 Research and Development…………………………………………………………...42-43

CHAPTER7: ORGANIZATION MANAGEMENT AND HUMAN RESOURCE PLAN…….44-48

7.1 Stakeholder Analysis and their interests………………………………………………44
7.2 Organizational Structure……………………………………………………….………45

4
 7.3 Departmentalization and their core function..........................................................…...45-46
7.4 MIS and Reporting/Communication Structure………………………………......…… 46
7.5 Board…………………………………………………………………………….......…46
7.6 Top Management…………………………………………………………………….…47
7.7 Job description………………………………………………………………………….47
7.8 Human Resource Management...........................................................................….......47-48

CHAPTER 8: FINANCIAL PLAN………………………………………………………...49-59

8.1 Financial Objectives…………………………………………………………………..49-50

8.2 Start Up expenses and Investment……………………………………………………51-52
8.3 Financial Plan and Loan Requirement………………………………………………….52
8.4Operating Expenses……………………………………………………………...………53
8.5 Sales Revenue…………………………………...…………………………………….53-54
8.6 Income Statement…………………………………………………………...………...54-55
8.7 Cash Flow Statement………………………………………………………………….55-56
8.8 Balance Sheet………………………………………………………………...…………57
8.9 Investment Apparisal……………………………………………………………….......58
8.10 Key Financial Indicators……………………………………………………………..58-59

CHAPTER 9: RISK AND CONTINGENCY PLAN…………………………………….60-61

9.1 Key Risks in the business and Risk Management Plan.......................................…......60

9.2 Contingency Plan and Exit Plan………………………………………………………60-61

APPENDIX…………………………………………………………………………………..62-72

REFERENCES……………………………………………………………………………….73

5
LIST OF TABLES

Page no.
Table 1: Costing and Pricing 19

Table 2: Start Up Expenses 51

Table 3: Preliminary expenses 52

Table 4: Source of Investment 52

Table 5: Operating Expenses 53

Table 6: Sales Revenue 54

Table 7: Income Statement 55

Table 8: Cash Flow Statement 56

Table 9: Balance Sheet 57

Table 10: Investment Appraisal 58

Table 11: Key Performance Indicators 59

6
LIST OF FIGURES

Pageno.Figure1: Michael Porters Five

Forces Model 25

Figure 2: Process Planning 39

Figure 3: Operation Flowchart 40

Figure 4: Organization Structure 45

7
Executive summary

Chapter coffee provides its customers the ability to drive up and order (from a trained Barista)
their choice of a custom-blended espresso drinks with take away facility. In addition, it will offer
fresh bakery products and also order coffee to their specification. With highly trained
staffs,Chapter Coffee will be providing a variety of coffee and bakery products with warm and
friendly environment to the customer.

Chapter coffee will capitalize at Lazimpat, Kathmandu in order to build a core group of repeat
customers. It will offer its customers the best prepared coffee in the area that will be
complimented with pastries, cookies as well as books and sound proof cabins that its customers
can relish their visit.

Chapter Coffee will be a business established in order to serve coffee beverages. The initial
investment for the business will be Rs. 2300000out of which 70% will be collected by bank loan
and remaining 30% will be self-invested by the owners itself. There will be the management
team of three people in the business including two Board of Directors, and one Manager. We can
see that in the income statement of five years there is increase in the revenue and there has been
growth in the net profit for the period of five years. From this, we have analysed that the project
seems to be profitable with respect to the amount of profit it will give in the period of five years.

Our future plan is to introduce more items in our menu and expand the business in other areas.
However if the plan doesn’t work our exit strategy is to sell the business.

8
Business Highlights:

Name of the Chapter Coffee

Business
Nature of Coffee shop
Business
Legal status of Registration as per the government
the business
Address Lazimpat, Kathmandu
Contact 01-4445567, chaptercoffee@gmail.com
Major Product Varieties of coffee,tea, bakery products,take away facility, soundproof
and services cabins, bookshelf with diversified books.
Target Anyone who enjoys coffee, mainly people age 15 and older, both male
customers and female, tourists, students, business class customers.
Major market Within Kathmandu valley
area
Working Monday – Thursday 7am-10pm
Schedule Fridays and Saturdays 7am-11pm and closed on Sundays

Human All Together 11 members.

Resource
Number of 2 shareholders
Shareholders
Total Initial Investment in fixed cost is Rs. 1,178,000
Investment Initial Investment in operating is Rs. 1,122,000

Capital Debt 70%

Structure Equity 30%
Bank and loan Short term loan upto 1 year

9
structure
Milestones of 2018- Business Operation
achievement 2019-Business evaluation
2020-Survey of market
2021-Enhancing of business activities
2022-Business expansion

Key Performance
Indicators Year 1 Year 2 Year 3 Year 4 Year 5
Current Ratio 2.86 6.97 10.18 12.94 15.35
Quick test ratio 1.31 5.17 8.38 11.14 13.55
Fixed Assets Turnover 4.81 7.05 10.32 15.11 22.12
Total Assets Turnover 2.55 2.68 2.69 2.63 2.54
6% 7% 9% 10% 11%
Net profit margin
27% 50% 92% 154% 249%
Return on fixed assets
Return on total assets 10% 20% 26% 30% 33%
(ROA)
Return on investment 10% 15% 20% 25% 31%
(ROI)
Return on common equity 28% 31% 32% 32% 30%
(ROE)
3,844,586.3 4,107,336.7 4,363,910.4 4,670,141.6 5,024,742.0
6 8 9 3 9
BEP in Rs.
331,639
NPV
17.94%
IRR
3.37years
Payback Period

10
Chapter 1

Introduction

1.1Coffee Overview in Nepal

Coffee is the drink of choice for many people across the world. Every morning millions of
people rely on their morning fix to get going for the day.Traditionally, Nepalese are more
tea-people than coffee-people.There are tea-stalls in virtually every nook and corner of the
country and it is still the favorite national drink for the rich as well as the poor.

But the mushrooming exclusive coffee outlets across Kathmandu valley are slowly changing
the drinking habits of Nepalese. These days, Cappuccinos, Lattes, Café Mocha, Americano
and Espressos are what are on everybody’s lips, literally and figuratively. Small, cozy and
exuding a lounge atmosphere, coffee outlets have become the place for restoring one’s sanity
after or in the middle of a hectic day of work.Over the last couple of years, the habit of coffee
consumption has shot up dramatically, particularly in Kathmandu and other urban centers,
with youngsters and foreign-returned professionals as the primary consumers. Earlier
considered as the drink of tourists and foreigners, coffee, primarily instant, is finding its
place on kitchen counters and restaurant menus.

According to industry insiders, the market for coffee is growing at the rate of around 15-20
percent per year, and this growth has been fuelled mainly because of the changing lifestyle of
the people and increasing per capita income along with an increase in the number of coffee
outlets. Only a few years ago, exclusive coffee shops were next to non-existent. Now there
are dozens of cafes and ‘bakeries’ serving coffee in Kathmandu.

11
1.2. Company Overview:

With the growing demand for high-quality coffee and great service, Chapter Coffee will
capitalize at Lazimpat, Kathmandu in order to build a core group of repeat customers. The
proposed starting date for the venture will be 04/02/2018. It will offer its customers the best
prepared coffee in the area that will be complimented withfresh bakeryitems, ideal place to study
with availability of books, sound proof cabins and also take away facilitythat its customerscan
relish their visit. Chapter Coffee will offer the visitors a totally new style of coffeehouse - one
offering a uniquely flavorful coffee drink and a comfortable environment at which to socialize,
relax, work and study.

Chapter Coffee will offer a variety of specialty coffee choices to the customers. The cafe will
serve Espresso,Iced Cafe Mocha, IcedCappuccino, Cafe Latte, Iced Coffee, etc. Besides
specialty coffee drinks, it will be providing varieties of flavored tea in order to maintain a
competitive advantage among its competitors.The simple pastry offerings may vary with
seasonality but the primary line will be muffins, cookies, and pastriers. The menu will be
complemented with ideal place to study, shelf full of diversified books and take away
facility.Thefaciltyof sound proof cabinsat the cafewill create the right atmosphere and reduce
excessive noise which makes customers stay longer.

Chapter Coffee will provide a complete, high quality specialty coffee experience for those
searching for something that is rapidly becoming popular among coffee drinkers in the city
area.No other coffeehouse in the area will provide the range of coffee drinks that Chapter Coffee
will do.It will be a reasonable venture for the customers, one that will encourage them to return
on many occasions.

Since coffeehouse is often a third place outside of work and home to relax; so creating the right
ambience is the major focus of Chapter Coffee.Furthermore, its high-profile location at Lazimpat
provides a mixed customer base that will maintain high level of business in every season, at all
times of the day and every day of the week.

12
1.3 Vision:

Chapter Coffeehave a vision to become best coffee provider with best quality service to its
customers and build a business by engaging in the customer experience, innovation, and
customer focus, delivery of results, trusting, and successfully reaching expectation.

1.4 Mission:

Chapter Coffee is a committed team of talented individuals who will provide superior quality
coffees and other bakery items. The mission statement is to provide all of customers with an
unparalleled products and experience. It will focus on providing quality coffee at a reasonable
price. Customer ranges from the students to working professionals to satisfy their needs and
tastes. It will constantly provide outstanding customer service and believe that customer
satisfaction is the ultimate goal. The company is dedicated to provide the family of employees
with a respectful and positive work environment where everyone is equal.

1.5 Values:

Some of the basic values which guide the company to perform the daily activities are as follows:

A. Customers are the focus of everything that is done.

 Listen to them, respond quickly and be honest.

 Act with integrity, and enthusiasm.

B. Services and products drive the growth opportunities.

 Attract and retain knowledgeable, technically skilled, experienced and capable people.
 Offer services and products that are “different” in some special way to increase the
competitive advantage.

13
1.6 Objectives:

Chapter Coffee’s objectives are to build brand awareness and customer service excellence, while
increasing sales. It intends to utilize the following strategies to achieve these objectives:

 Develop a high-quality menu of different coffee blends.

 Provide an excellent service experience, anticipating the needs of the customers and
delivering the best service.
 To build a strong reputation in order to attract a loyal client and generating a consistent
sales volume.
 To signify the meaning of hospitality through a strong and reliable staff.

A. Short Term Goals:

1. To maximize profit.
2. To minimize cost of operations.
3. Toincrease the number of regular customers.
4. To provide trainings to the staff of cafeteria.

B. Medium Term Goals:

1. To increase awareness and image building through effective channels.

2. To achieve a profit margin of 7% in year 2 and 10% by year 3.

C. Long Term Goals:

1. To maintain the revenue growth.

2.To increase the sales as compared to the initial year.

3. Be the cafe of choice in Nepal and recipient of the best coffeehouse award.

14
1.7 Building Blocks of Business Model:

Customer Segments:

1. People who loves to taste different varieties of coffee.

2.People who enjoy reading at different environment.

3. Local and foreign customer base.

Value Propositions:

1. Quality products and services.

2. Combines variety of ambience with relaxed environment.

3. Well trained staffs.

4. Ease of ordering experience.

Channels:

1. Promotion through social media.

2. Direct sales from Chapter Coffee.
3. Word of mouth advertisement.
4. Web service.

Customer Relationships:

1. Availability & comfortable corners to relax.

2. Free wifi with speedy internet.

3. Hygienic shops.
4. Frequent communication with customers and upgrades.
5. Customer satisfaction.

Revenue Streams:

1. Cafe revenue.
2. Sales of products and services

15
 3. Take away facility.

Key Activities:

1. Serve varieties of coffees with hygienic bakery items.

2. Peaceful environment with indoor and outdoor facility.
3. Maintain relationship with suppliers.

Key Resources:

1. Location
2. Human Resources
3. Suppliers
4. Basic Infrastructure
5. Cafe ambience

Key Partners:

1. With book stores.

2. Employees(Both full time and part time).
3. Vendors(Suppliers of materials required).
4. Marketing partners(Well known media circle, advertising agencies).

Cost Structure:

1. Operational cost (Eg: rent, salary, electricity, water, etc)

2. Legal, registration and taxes.
3. Marketing cost.
4. Supplies and logistics cost (Eg: raw materials for coffee, tea, etc)
5. Infrastructure and equipments design and setup cost

16
Chapter 2
Product/ Service Description
2.1 Product Description:

Chapter Coffee will focus on serving from a customer base of corporate people, students and
arena visitors. The cafe will list limited items in the menu in the early stage. We believe in the
quality rather than quantity.

2.1.1 Products:

Chapter Coffee’s primary offering gourmet roasted coffees with such varities such as Espresso,
Iced Cafe Mocha, Iced Cappuccino, Cafe Latte, Iced Coffee, etc. Rounding out the simple menu
line will be pastries obtained with an outside supplier, freshly made and delivered daily. The
simple pastry offerings may vary with seasonality but the primary line will be muffins, cookies,
and pastries.

2.1.2 Services:

The menu offerings will be supplemented by take away facility, books and magazines that
customers can read inside the cafe.The facilty of soundproof cabinat Chapter Coffee
makecustomers stay longer & spending more on extras like drinks and bakery products.

2.1.3 Future product and services:

Coffee house traditionally have not been considered kid friendly. To overcome this, Chapter
Coffee have long-term plans (5 years) to open a second coffee shop. A combination of indoor
play area. This concept allows parents and caregivers an opportunity to meet and relax with other
adults while the children can enjoy the indoor playground amenities.

2.2 Product Attributed and Benefits to the Consumer

Customers are the most important people for any business. They are the resource upon which the
success of the business depends. Hence, the cafe will try to satisfy its customers by providing

17
hygienic and fresh products at reasonable price. It will never compromise upon the quality of
ingredients used to make coffee products and other products as well.

2.3 Research and Development efforts and background

The majority of the people didn’t know about coffee until some years ago. But, it has now
developed like a fashion.

“Almost none of us had heard the word ‘coffee’ 20 years ago.“ Opening a coffee shop in Nepal
has now almost been like opening a momo shop. Within a period of few years, coffee
consumption has heightened dramatically. This can be realized from the growing number of
coffee shops in Kathmandu valley. Tapping popularity of coffee drinks among Nepali
consumers, many coffee stations are streaming in the market and creating their own brand.

Coffee shops these days have become social gathering hub where people are at ease to spend
their leisure times with friends or alone. They are the new hangouts for urban youths. They are
one of the highly sought places of most youths. Similarly, coffee stations are favorite hangouts
for professionals belonging to various walks of life and have remained popular among foreigners
too. Coffee shops have established themselves as social platforms where people can spend their
time to write, chat, and read books etc.

The sentiment can be seen in the delight of coffee lovers in coffee stations across the capital.
Corresponding to the needs of their consumers, these stations also provide ample space and
materials for spending leisure creatively. One of such facility is free WiFi connectivity.
Availability of free internet services has acted as an attractive feature as consumers need to scan
social media or work-online is catered. It has enabled people to finish off their work while
loosening up at the same time in a coffee station.

2.4Costing and Pricing Basis

The prices will be slightly higher then those of local competitors, mainly for the reason that we
strive for quality in products. On the actual cost of the particular products, they will vary
according to each product. The pricing list of our main products are listed as follows:

18
 Items Prices Rs.

Espresso 110

Iced Cappuchino 200

Cafe Latte 250

Iced Cafe Mocha 275

Blended Mocha 250

Iced Coffee 230

Chocolate cookies 40

Muffins 80

Pastries 160

Flavoured Tea 110

Oreo Cookies Shake 250

Iced Lemon Tea 170

Vanilla Mocha 275

Hot Chocolate 195

Americano 130

Table 1:Costing and pricing

2.5Service Production process:

Our cafe will open from 7am-10pm (Monday – Thursday) 7am-11pm (Fridays and Saturdays)
and closed on Sundays. For production process we will have all the raw materials at the coffee

19
shop. The inventory will be checked on weekly basis and added accordingly. At the shop, we
will have the waiter take the orders from customers and hand it over to the baristas. Then the
barista will:
 Set the coffee machine as per the requirement.
 Put coffee beans in the coffee hopper.
 Press button for the desired coffee.
 Coffee is ready to be served.

2.6 Quality Assurance and control

Our cafe will ensure a good quality assurance and control in the field of health and safety
management. Health and safety encompasses a great deal of how we operate our cafe. It is used
to ensure that products are created with the fewest number of defects possible. Since we regard
our customers as valuable assets, we will always focus on providing quality products with high
nutrition. We give special importance in purchasing the fresh ingredients. We insure that we will
never compromise in quality by regular inspection and feedback collected from the customers.
Also we will well train our staffs so that our customers will not face any issues related to
employees. Our quality standards will ensure our cafe to be one of the best among our
competitors. We can measure quality with the help of customers’ feedback and improve the
service accordingly. The major quality parameters are as follows:

1. Response:

We will also provide product as per the customer request. We will also look at the
customer’s feedback and improve it.

2. Courtesy:
The staff members will be polite to the customer and greet them when they make an
order. They will also be trained to handle complaints and handle situation with a smile.

3. Cleanliness:
The area of the coffee shop will be hygienic and clean. The overall environment of the
coffee shop will be customer friendly.
20
 4. Timeliness:
Our coffee shop will provide quick service to customer. We will provide service to the
customer as per the requirement.

2.7 Sourcing of raw materials and supplies

Suppliers are critically important to the health of the business. The suppliers of the product and
services shall be the local wholesaler which deals with products such as coffee ingredients, fresh
bakery products, fresh fruits. We need to maintain good relationship with them for quality raw
materials at low price.

21
Chapter 3
Industry and Market Analysis

3.1 Industry Structure and Market Characteristics:

Recently, Nepal’s coffee shop industry has seen uncharted growth. There are more than 100
espresso machines within a two km stretch of road in Kathmandu valley. Just 15 years ago,
coffee was considered an obscure and alien in Nepal, food and beverage outlets would put it
under low priority, preferring tea instead. Now coffee is on the top of their best. Nepal has also
developed a coffee culture that is flourishing recently. The popularity of coffee in Nepal was not
always so prominent.

Consumer behaviour keeps upon changing. Consumers of todays are more health conscious.
They consume only those drinks and food which will be beneficial for them. So, consumers are
searching for the best place where they can have quality drinks and food with peaceful
environment . So the market demand is more regarding the fresh and healthy food with pleasant
environment. However, we will ensure to use quality ingredient so that it does not have any side
effect to our customer health and our product will be one of the best chosen product among the
customers. As the generations change, so do their priorities.Nowadays, people don’t tend to stay
at a place and drink coffee, they prefer doing their work or enjoy the view and have a cup of
coffee. Keeping this as a priority, Chapter Coffee will provide take away facility.

Besides, excessive noise is one of the biggest complaints people have about most cafes which
plays a critical role in creating the right atmosphere. It causes people to eat faster and leave
sooner which directly affects the business. So, the soundproof cabin facility of Chapter Coffee
will create right atmosphere for the consumers to read and relax in a peaceful environment.

3.2 PESTLE Factors

1.POLITICAL FACTORS:

The political factors take the country’s current political situation. It has direct impact on the
business environment. In the case of Nepal, there is highly unstable political situation. The

22
economy has been seriously affected by the political conflict in recent years. This can create
problem in the operation of our business. Some of the unpredicted situation such as Banda may
cause problems in the supply of the required material as per customersdemand and the cafe will
be closed for longer time if this situation continues.

2.ECONOMIC FACTORS:

Economic factors involve all the determinants of the economy and its state. These are factors that
can conclude the direction in which the economy might move. The per capita income of
Nepalese is also very low. If the income of the consumers’ decrease, they may not feel it cost
effective to consume coffee. Also the increase or decrease in the inflation rate will have higher
impact on wage demands and other facilities.

3. SOCIO CULTURAL FACTORS:

Society where we will be starting our operation is highly dynamic. The tastes and preference of
the people living in the society are changing day by day. And changing lifestyle has provided
numerous opportunities through which we can establish a new venture. On one hand it provides
opportunities while in other case, it can also lead to many challenges and threats. Hence, we will
be aware about the change in lifestyle of our customer. We will try to serve them as per their
requirement.

4.TECHNOLOGICALFACTORS:

Technology is advancing continuously. The advancement is greatly influencing businesses.

Technology alters every minute and consists of invention, technologies, techniques etc. With
these new innovations, the cafe will perform its operation more effectively.

5. LEGALFACTORS:

The person who is willing to establish a new enterprise must be aware about the legal procedures
required to launch a business. Legal provision directly affects business organization. If the legal
provisions are favorable, the business organizations are positively affected and if they are
unfavorable the business organizations are negatively affected. However, the company Chapter
23
Coffee will be established under the Company Act 2063. The registered business will be opened
at Lazimpat, Kathmandu. The company will obtain the approval from the Company Register.
After getting approval form Company Register Office, it will take license from Kathmandu
Metropolitan city. The firm should present the following documents in the office of the company
register.

 An application form.
 Two copies of Article of Association.
 Two Copies of Article of Memorandum.

6.ENVIRONMENTAL FACTORS:

These factors can’t be unseen. Beside the time and money cost there will be other cost as well,
that is environmental cost. The environment around which the business is operating greatly
affects the business. Numerous factors determine and affect the environment of an organization,
which should be identified, understood and analysed by the company so it can achieve optimum
performance.

24
3.3 Michael Porter’s Five Forces Analysis:

Porter's Five Forces model, named after Michael E. Porter, identifies and analyzes five
competitive forces that shape every industry, and helps determine an industry's weaknesses and
strengths. They are:

Figure 1. Michael Porters Five Forces Model

1. Threat of New Entrants:

Each and every day various new competitions are entering into the market and the level of
competition differs. So it is important to maintain customer relationship and provide quality
service at reasonable rate.

25
2. Threat of Substitute Products:

The threat of substitution will always be present in the market. There are many coffee and bakery
shops available in the market today which may substitute our business. As, we are providing take
away facility, ideal space to study with sound proof cabinswe must continuously add features in
our business in order to retain our customers.

3. Bargaining power of the buyer:

The buyer or customer has greater influence upon our business. Since there are many
competitors in the market it is our duty to make good relationship with the customer because one
happy customer can bring ten more new customers. We also offer best quality service at the
lower price.

4. Bargaining power of the supplier:

Suppliers are one of the most important factor for the success of any businesses. Supplier is
those people who provide us quality of raw materials on time. We plan to choose a singular
supplier on whom we can be dependent upon for our food & book supplies. Maintaining a good
relationship with our supplier is important for our business.

5. Rivalry among the existing firms:

As we all know this type of business is not a new business in market which means that there is
a huge competitors for this types of business. Competitors includes Himalayan Java, Nanglo
Bakery coffee, Coffee station, Beans Coffee these competitors creates rivalry to be the best of
all.

3.4 Competitor Analysis:

Our major competitors can be taken all the outlets which provide customers with premium
coffee,bakery products, place to study. There are numbers of coffee shops in Kathmandu with
large competition . But, some of the major competitors are listed below:

 Himalayan Java
 Nanglo Bakery coffee
 Coffee station
 Beans Coffee

26
SW analysis of major competitors in the market.

Strenght:

 Easy to remember restaurant name

 Selective menu
 Experience in management
 Good customers’ feedback
 Nice atmosphere
 Relationship with supplier
 Healthy and fresh ingredients/food
 Market Experience & Analysis

Weakness:

 Quite slow and negative services feedback on the Internet

 Brand sign is not high-light
 Expensive price

3.5 Consumer and Demand Analysis:

 Consumer Segmentation:

Chapter Coffee will cater to people who would like to get their daily cup of great-tasting coffee
in a relaxing atmosphere with quality ambience. The major target groups for Chapter Coffee
include:

 Affluent local residents, since local customers form the loyal core of this
business.
 Tourists, Lazimpat has a good year-round tourist activity since majority of the
five-star hotels are situated in the area.

27
  Working people, because most people would find Chapter Coffee to be the
perfect destination for an inviting and convenient atmosphere after-work
relaxation.
 Students, as they represent an excellent customer segment since coffeehouses are
proven to be very popular among them.
o Often under the drinking age, students need an affordable place to hang
out with their friends.
o Students bring an energy and youth to the coffeehouse.
o By attracting students we generate excellent word-of-mouth.

Demand Analysis:

The coffee market in Nepal has been growing and has become a part of an individual’s daily
consumption. The consumers have been more conscious about quality of the products and
services rather than quantity. People spend time at cafes where specialty drinks and regular cups
of coffee are available along with an inviting atmosphere.

Besides, in Kathmandu valley cafes are no longer merely places to drink coffee only, people are
going there to get work done, or study for classes. Cafes are offering books to read, while they
enjoy their drinks. In the current scenario, the consumers are loving the combination of coffee
with various facilities which leads to the numerous openings of such cafes.

28
Chapter 4

Business Strategy

4.1 SWOT Analysis:

SWOT analysis looks at the strengths, weaknesses, opportunities and threats that the business
faces. By focusing on the key factors affecting the business, now and in the future, it will help to
provide clear picture of the business performance and prospects.

STRENGTH:

 Highly trained and experienced staffs.

 New, different and healthy varieties of coffees and other products.
 Sound proof cabins for various purpose.
 Take away facility.
 Facility of broad selections of book.
 Located in prime business area.
 Warm, inviting atmosphere.

WEAKNESS:

 Expensive Rent.
 We have not yet established our brand name, or a customer base.
 No credit card/debt payment.
 Low practical knowledge.

OPPORTUNITY:
 Expansion of product line in the future.
 Chances of booming in the moderate economy.
 Growing market as the demand of coffee is never ending.

29
  Use of technology.
THREAT:
 Large competition
 External changes
 Bandhas and strike
 Threat of new entrant

4.2 Business strategy

Our strategy is divided into short term and long term strategy and they are:

A. Short-Term Strategy:

 Listen to customers:
Small businesses need to keep up with the changing needs of their customers in order to keep an
edge on the competition. Ensure that there is a way for customers to voice their feedback and for
you to show that you’re listening. 
 Build and nurture customer relationships:
Ensure that our team has access to all necessary customer information so they can easily build
high-quality relationships and grow a loyal customer base.
 Trained and highly experienced staffs:
The highly trained staff will contribute to enhance day to day productivity. The proper trainings
and instructions would be provided to new employees by senior employees to maintain quality
service.
 Make sales and marketing a priority:
Sales and marketing are key to success for any kind of business. For a business to succeed, the
products and services it provides must be known to potential buyers.By using various marketing
strategies we will promote our products and servicesthat will provide a chance of being
discovered by prospective customers.

30
B. Long-Term Strategy:

1. After meeting the demand of our area we would expand our business in other area in near
future and it will depend upon the success of our business.
2. Efficiency of staff would be ensured by various training programs by inside and outside
instructors.
3. Customer responses would be valued with more interaction with them and their
suggestion would be implemented for the benefit of our business.

31
Chapter 5

Marketing Plan

5.1 Marketing Objective and goals:

In the present scenario, Marketing is a central function in any business. Marketing involves
getting the right product at the right price, promoted using the right medium and sold in the right
place. It is even more essential for start-up company as they can satisfy the customer need more
precisely. The closer the marketing mix of product, price, place and promotion are to customer
requirements, the more likely it is that a business will be successful.Hence, the business will be
promoted through the use of social media, word of mouth. Primarily it will promote the product
within a limited area which will be expanded when the demand rises.

There are many cafes providing similar service in that area while some are about to establish like
us. People will recognize our coffee shop when we will be able to market our products in an
appropriate method or either different than others. Therefore, the marketing of cafe will be
entirely done through the private channels based on individual contacts and association. It will
help to analyse the current market condition.

A. Short Term Goals:

 To create 60% awareness about product and services in Kathmandu valley running
promotion throughout the year.

B. Medium Term Goals:

 To introduce various facilities and varieties of products for customer acquisition, loyalty
as well as image building through effective channels.

C. Long Term Goals:

32
  To establish Chapter Coffee as a unique and strong brand and also to manage the loyal
customer base through loyalty scheme.

5.2 Consumer Analysis:

In Kathmandu valley, market is made up of consumers who have busy schedules, a desire for
quality, and disposable income. As much as they would like the opportunity to sit in an upscale
coffee house and sip a uniquely blended coffee and enjoy doing little things they don't have the
time to do so. However, they still have the desire for the uniquely blended coffee as they hurry
through their busy lives. According to industry statistics, the consumption of coffee and
flavoured coffee products is growing rapidly. The segment of that market we are targeting is the
commuter and that number is increasing.
It is estimated that there are well over hundreds commuters driving to and from work each day
in our market. Statistically, at least 50% of those are coffee or tea drinkers. That gives the
perfect cup a significant daily target for its products.

5.3 Marketing and Growth Strategy:

Positioning Strategy:

We will differentiate our coffee shop by offering an experience unparalleled to the competition.
Chapter Coffeewill have a homely environment. All mugs and cups will be different but hold the
same amount like home.At Chapter Coffee,it will offer its customers the best prepared coffee in
the area that will be complimented with fresh bakery items, ideal place to study with availability
of books, sound proof cabins and also take away facility that its customerscan relish their visit.
Strategy will be focused at getting new customers, retaining the existing customers, getting
customers to spend more and come back more often. Establishing a loyal customer base is of a
paramount importance since such customers core will not only generate most of the sales but
also will provide favorable referrals.

Competitive Advantage:

33
A competitive advantage is what makes you better than the competition in your customers
minds.We are mindful of the fact that there is stiffer competitions amongst coffee shops in
Kathmandu Valley.

Chapter Coffees competitive advantage will be  its market leading product quality.It will be able
to stand out among its competitors by using time tested blends of different coffees to come up
with compelling final products and take away facility.The ideal place to study with shelf full of
diversified books,facilty of sound proof cabinsat the cafewill have competitive advantage over
our existing and potential competitors.The marketing strategy of the cafe will communicate to
the target customer segments that its product clearly exceeds all of the competitors.Chapter
Coffee’s best service strategies will be to provide a way to meet customers need than other
competitors.

Growth Strategy:
We will be planning to open different branches all over Kathmandu valley and even outside the
Kathmandu valley if the cafe runs successfully.The cafe will be customer focused and stay
creative with quality products. Besides, we will also ensure that our excellent services speak for
us in the market place; we want to build a standard coffee shop that will leverage on word of
mouth advertisement from satisfied customers.

5.4 Marketing Mix – 7P’s:

i. Product:

Chapter Coffee offers specialty coffee drinks (both hot and cold coffee& beverages such as
lattes, mochas, cappuccinos and smoothies), which deliver the value of quenching a
customersthirst, as our main product along with other subsidiary products like flavoured tea,
pastries and cookies. The offerings will be supplemented bybooks, soundproof cabins as well as
WiFi that customers can enjoy inside Chapter Coffee premises.

Chapter Coffee will offer the best tasting coffee& beverages to its customers. This will be
ensured by using high-quality ingredients and strictly following preparation guidelines. Chapter
Coffee will consider the proper preparation technique of its coffee& beverages as of supreme

34
importance since a minor deviation from the amount of coffee in the shot, the size of the coffee
particles, the temperature of milk, etc, can negatively affect the quality of the prepared drink.

ii. Price:

After the cafe first opens, its key objectives will include strong market share, survival and return
on investments. Achieving these aspirations will eventually allow the business to become
profitable. Keeping these goals in mind, we will choose prices which are competitive with the
industry. Doing so will help the Cafe stay in business.

The price should be set at moderate level in order to attract a large number of buyers and to gain
large market share. It shouldn't be too low because that might give a negative image to the
consumer. They might think it to be a low quality product. It shouldn't be too high either because
it might not survive the competition in that case.

Our prices will be slightly higher then those of our local competitors, mainly for the reason that
we strive for quality in our products. On actual cost of the particular products, they will vary
according to each product. Overtime our prices may fluctuate along with the rises and falls of the
raw resources as well as trying to remain close with our competitors and not allow the gap
between quality and price become too large.

iii. Promotion:

Promotion objectives of this cafe will consist of creating consumer awareness, generating
interest, desire and moving the customer to consume our product. Strategies for making
customers aware of the cafe will include advertising in social media, word of mouth, individual
contacts.

We also hope to contact our customers through the internet by the use of social networking sites,
such as Facebook, twitter and instagram in order to sell our products as well as attract people to
our location business. Beyond an internet connection, we will incorporate business cards,
brochures that provide our menu and product selection.

iv. Place:

35
Chapter Coffee will be located in Lazimpat, which is considered as a high profile site in the city
of Kathmandu valley. This location is designed for high volume year round, with revenues and
profits to match. As such, introducing Chapter Coffee at this location is likely to increase the
potential for success due to the following reasons:

 Prime site location

 The highly affluent population in the area
 Ever-changing upscale student population
 Year-round tourist activity

v. Process:

It is associated with customer service and involved in how effective the company is in customer
complaints, processes for identifying customer needs and requirements processes for handling
orders etc. The daily operation of the company is highly concerned in order to deliver the right
service to the right customer for the attainment of the value.

vi. Physical Evidence:

Chapter Coffee is intended to create an ambiance superior to all other coffeehouses in the area
with upscale look. The interior design of Chapter Coffee is unlike any other prevalent coffee
shops. Comfortable tables, chairs and sound proof cabins will help the customers to relax from
the daily stresses and will differentiate Chapter Coffee from incumbent competitors.

vii. People:

Customers are the main strength for the company. Customer service lies at the heart of modern
service industries and are likely to be loyal to coffee shop that serve them well. Hence, the
company will focus on hiring employees who have taken appropriate training in the field of hotel
management and will train them with physical training such as smile, manners, good posture for
long time, talking skills, etc more if required.

5.5 Sales Strategies, Management and Techniques:

36
The unique aspects of our business include individual product selection, quality assurance, and
high-quality full service distribution. Our sales strategy focuses on building a customer base by
providing good customer experience. Effective sales strategies usually comprise a combination
of several techniques. The top sales techniques might vary considerably according to the
location, concept or theme of the coffee shop. The company focuses on making people feel
special and appreciated in order to gain more customers. This is done by providing them special
benefits etc.

We believe that providing our customers with what they want, when and how they want it, is the
key to repeat business and positive word-of-mouth advertising.The basic management and
techniques of Chapter Coffee are:

 To speed up the customer service, at least one employees will be servicing clients while
two employee will be preparing the customer's order, the other one will be taking care of
the sales transaction. All sales data logged on the computerized point-of-sale terminal
will be later analyzed for marketing purposes.
 Sales reps and in-house personnel who deal with customers will be carefully trained and
given wide latitude for insuring that customers are always satisfied.

37
Chapter 6

Production and Operational Plan

6.1Location , Premises:

Chapter Coffee will serve its customer from Lazimpat. The company has capacity to serve
40people at once. Customer can enjoy pleasant environment with high speed internet and cabin
facility. Our emphasis is more on our interior design. Experienced and well trained interior
designer will design in such a way that it will create peace and happiness among the customers.

6.2Infrastructure Buildup and facilities:

Chapter Coffee will be located at Lazimpat. The cafewill secure a one-year lease of the vacant
1200 square feet premises. The floor plan will include a 200 square feet back office and a 1000
square feet coffee bar, which will include a seating area with 10 tables, 4 sound proof cabins, a
bookshelf, a kitchen, storage area and two bathrooms. The space in the coffee bar will be
approximately distributed in the following way 1,000 square feet for the seating area, 100 square
feet for the production area, and the remaining 100 square feet for the customer service area.

The premises will have the necessary water and electricity hookups and will require only minor
remodeling to accommodate the cafe, kitchen and storage area. The coffee bar's open and clean
interior design will convey the quality of the served drinks and bakery products, and will be in-
line with the establishment's positioning as an eclectic place where people can relax and enjoy
their cup of coffee. The clear window displays, through which passerby will be able to see
customers enjoying their beverages.

Process planning

In the process of being prominent we will have thefollowing process of the company. When the
customer enters into our coffee shop, he will place the order for the coffee. We will pass the

38
order to the employee who prepares coffee drinks(baristas) and baristas will make the order and
the waiter will serve the product to the customers and at the end they will receive the payment
from the customer.

Receive
Pass the Order
Product from
to Baristas
Baristas

Receive the Offer the

payment
Payment Product

Figure 2: Process Planning

6.3 Time Plan/ Work Schedule:

The working hours will be from 7am-10pm (Monday – Thursday) & 7am-11pm (Fridays and
Saturdays). and holiday on Sunday.Working days will be taken from the Nepali Calendar.

6.4 Production/ Operation Process:

6.4.1Technology:

39
In this technology world, without use of technology products is impossible. For the daily
operation of the services and product, software shall be installed for maintaining the financial
calculation, and record the product and service provided.

6.4.2 Skill requires:

 Creating, communicating, and implementing the organization’s vision, mission, and

overall direction.
 Specifying staff requirements and coordinate their activities.
 Proactively handling any arising issues and troubleshoot any emerging problems.
 Develops, executes and evaluates new plans for expanding increase sales.
 Preparing financial reports, budgets, and financial statements for the organization.
 Consistently stays abreast of any new information on the company’s products,
promotional campaigns etc.

6.4.3 Operation Flowchart:

Customer
enters coffee
shop
Waiter: asks
customer for
order

waiter: hand
order to barista

Barista: makes
beverage according
to order
Waiter: serves
beverage to
customer.

Figure 3: Operation Flowchart

40
6.5 Supply Chain Management:

We will negotiate an agreement with Nepal Organic Coffee wholesalers to supply premium
coffee products with a weekly shipping. Milk, sugar, fruits etc. will be sourced from the local
supermarkets.

Muffins, pastries, cookies, will be supplied on a daily basis by Herman’s bakery nepal.

6.6Order Processing and Inventory Control:

The minimal sets of equipment and furniture are acquired at the initial stage of the business. The
total cost of three lakh fifty eight thousand is allocated for electronics like coffee maker,
blenderrefrigerator etc and a total cost of five lakh is allocated for furnishing the shop. The
kitchen utilities required is estimated to cost a total of two lakhs. The other equipment is
acquired as necessary.And about inventories, we will have very minimal inventory since the
goods are perishable in nature.

6.7 Quality Assurance and Control:

Our cafe will ensure a good quality assurance and control in the field of health and safety
management. Health and safety encompasses a great deal of how we operate our cafeteria. It is
used to ensure that products are created with the fewest number of defects possible. Since we
regard our customers as valuable assets, we will always focus on providing quality products with
high nutrition. We give special importance in purchasing the fresh ingredients. We insure that we
will never compromise in quality by regular inspection and feedback collected from the
customers. Also we will well train our staff so that our customers will not face any issues related
to employees. Our quality standards will ensure our cafeteria to be one of the best among our
competitors. We can measure quality with the help of customers’ feedback and improve the
service accordingly. The major quality parameters are as follows:

41
 1. Response:

We will also provide product as per the customer request. We will also look at the
customer’s feedback and improve it.

2. Courtesy
The staff members will be polite to the customer and greet them when they make an
order. They will also be trained to handle complaints and handle situation with a smile.

3. Cleanliness:
The area of the coffee shop will be hygienic and clean. The overall environment of the
coffee shop will be customer friendly.

4. Timeliness:
Our coffee shop will provide quick service to customer. We will provide service to the
customer as per the requirement.

6.8 Research and Development:

The majority of the people didn’t know about coffee until some years ago. But, it has now
developed like a fashion.

“Almost none of us had heard the word ‘coffee’ 20 years ago.“ Opening a coffee shop in Nepal
has now almost been like opening a momo shop.Within a period of few years, coffee
consumption has heightened dramatically. This can be realized from the growing number of
coffee shops in Kathmandu valley. Tapping popularity of coffee drinks among Nepali
consumers, many coffee stations are streaming in the market and creating their own brand .

Coffee shops these days have become social gathering hub where people are at ease to spend
their leisure times with friends or alone. They are the new hangouts for urban youths. They are
one of the highly sought places of most youths. Similarly, coffee stations are favorite hang outs
for professionals belonging to various walks of life and have remained popular among foreigners

42
too. Coffee shops have established themselves as social platforms where people can spend their
time to write, chat, play games and read books etc.

The sentiment can be seen in the delight of coffee lovers in coffee stations across the capital.
Corresponding to the needs of their consumers, these stations also provide ample space and
materials for spending leisure creatively. One of such facility is free WiFi connectivity.
Availability of free internet services has acted as an attractive feature as consumers need to scan
social media or work-online is catered. It has enabled people to finish off their work while
loosening up at the same time in a coffee station.

43
Chapter-7

Organization/ Management and Human Resource Plan

7.1 Stakeholder Analysis and their interests:

In any project the stakeholders are the people for whom the project is being conducted and who
have the most control over it. Stakeholders have needs and expectations and can be internal or
external to the organization. They can be further divide into direct and intermediary stakeholders:

 Direct stakeholders are directly connected to the organization. For example, funders,
charity commission and, of course, our beneficiaries.
 Intermediary stakeholders are those who represent others; they may still have an interest
in the organization but it will be different than a direct stakeholders.

In coffee business, the main stakeholders includes :Employees (baristas, partners), customers,
suppliers (supply firms, coffee farmers), environment, investors, governments.
Stakeholders are the one who have the most impact on our business and that affects our market
growth and expansion. We will always put our stakeholders to our priority list and treat them
with all respect. We will listen to and openly communicate with stakeholders about their
respective concerns and contributions. We will always try to maintain a good relationship with
them so that our market grows smoothly. We will give major concern to the primary stakeholders
and have the following strategies to maintain a good and healthy relationship with them like we
will always make them believe that they are equally important for the success of our business.
We will value their opinion and will be doing more interaction with them and their suggestion
will be implemented for the benefit of our business.Therefore, we will recognize the
interdependence of efforts and rewards among stakeholders and will attempt to achieve the fair
distribution of the benefits.

44
7.2 Organizational Structure:

Board - 2

Manager-1

Sales Operations Inventory

Waiters - 3 Accountant-1 Store Keeper - 1

Roaster person(Baristas)-2
Cleaner -1

Figure 4: Organizational Structure

7.3 Departmentalization and their core function:

Departmentalization is an aspect of organizational design that includes the subdivision of a

business into units based on their function of other criteria. Most companies, including coffee
shops, are likely to use two or more types of departmentalization simultaneously. The
organizational structure of our coffee shop will be simple. The departments will be divided into
administrative and services delivery department. In administrative department, it includes board,
manager & accountant. They ensure the smooth flow of business and are responsible for the over
all performance. Manager supervise and coordinate the work of all departments. He/she

45
willestablish networks with different stakeholders of the company and sort out legal and social
responsibilities. The key responsibility of the accountant is internal accounting and record
keeping of all the financial transactions. Besides budgeting and resource allocation, reporting to
manager is also the key responsibility of accountant.

Similarly, in service delivery departmentit includes baristas, storekeeper, waiter& cleaner.

Twohighly trained baristas will be employed who know the taste and quality of the coffee
beverage that are to be served to the customer. They will also be responsible for taking orders
from waiter, processing order for bakery items, serving the products and also maintaining
relationship with customer. Storekeeper has the key responsibility to receive, arrange, preserve,
record and supervise the materials. Besides, it includes the responsibility of proper maintenance
of book shelf.The company will hire three people who have taken proper management training
under hotel management. Their main task will be to attend the customer, take their order and
help the customer if required. Cleaner will be responsible for cleaning the dishes and keeping
the business area clean.

7.4 MIS and Reporting/Communication Structure:

Cafe business requires maintaining proper book-keeping for their account. Record keeping is
most important activity in the business as it will help for smooth operation of the business. The
company must keep the record of the raw material being purchased and used so that there won’t
be any delay in fulfilling the order of the customers.

Similarly, there should be book-keeping, systematic record of inventory, sales, performance of

the employees on the daily basis. Based on the record we are able to evaluate the performance of
cafe and further strategies for the company can be formulated for operation of the cafe.

7.5 Board:

The cafe will be registered with name “Chapter Coffee” under the Partnership Act 2019. There
will be two board of directors. It will be jointly owned by Miss. Alisha Shresthaand Miss. Sony
Shrestha.

46
7.6 Top Management:

Effective management team are needed in growing companies. Many businesspeople believe
there is only room for one leader, but a strategically built management team can be an efficient
way to delegate leadership to business-specific experts. Jobs are demands matching to people's
strengths to form a management team. That means responsibilities are given to people based on
skill level.

In Chapter Coffee our top management will be manager and accountant.Theaccountant will be
responsible to the manager whereas, the manager will be responsible to the Board of Directors of
the coffee shop.

7.7 Job description:

The Job Description of the employees is attached in the Annex.

7.8 Human Resource Management:

Human resource department is vital to any organization.At Chapter Coffee, we will carefully
select our employee.

7.8.1 HR Planning:

Employee Selection is essential as for hiring the right person. At Chapter Coffee, effective
selection is evaluated by their skills and qualifications. Effective selection can only be done
when requirement meets the line. By picking best applicant for the job, the coffee shop will get
good performance of employees. Moreover, there will be employee turnover problems in
business. By employing the right applicant, the business saves money and time. During selection
procedure,proper screening of candidates takes place, testing for the entire potential candidate
who applied for the given job.

The aspects that Chapter Coffeesee in employees are adaptability, reliability and the capability
ofteam working. We will often specify the qualities that are looked for in employees upfront in

47
its job positions, which will allow prospective employees to evaluatethemselves to a certain
extent.

7.8.2 HR Administration:

Rules,facilities and procedures will be determined by the top management. And according to the
rules all the staff must perform their designated job.

7.8.3 HR Development:

At Chapter Coffee, we all know that it is our staff that make it happen. That's why it's our
primary objective to train our team members and give them the chance to develop themselves.
To make this happen, we create equal environments for everyone, determine the best
development facilities for them and see each member as the potential.Each new member of
Chapter Coffeeteam, in accordance with his/her position, is subject to a theoretical and practical
training programme. This process is a good opportunity for the team member to improve their
skills and determine their career.
The training programme for the new employee starts with the exploration course and continues
with the job training. Following the completion of the basic training and the competency-based
interview, the employee is ready for the next step. This process alternates according to the
employee's career-building calendar. As a result of our devotion to equal-rights policy, all
candidates are treated equally.

48
Chapter 8

Financial plan

8.1 Financial Objectives

A. Short Term Objectives:

The short-term objective is to procure financial resources at an affordable cost thereby increasing
the return to the shareholders.This objective is often times refer as “profit maximization”. In
brief, short term plan could be explained as:

 Monitoring of costs on a continuous basis through budgets.

 Suitable cost reduction techniques wherever the costs are high.
 Minimization of cost of borrowed capital from outside through financial discipline.
 Cut spending on unnecessary and luxury items.

B. Long Term Objectives:

The long-term objective of financial management is to increase the wealth of the shareholders.
The term “wealth” refers to various business assets of the enterprise that are free of debt. This
means that this wealth belongs to the equity shareholders. It is often reflected in the “book value”
of the share as reflected in the balance sheet. Some of the measures through which we achieve
the long-term objective are:

 Strategic financial management decisions relating to expansion.

 To assess the projected costs, operating budget and financing streams to determine
whether or not the new facility, or facility expansion, will generate enough income to pay
operating expenses.
 To identify potential partnerships with other that might be able to collaborate with our
business to provide certain services and share some expenses.

49
C. Assumptions

The basic assumptions that have been made in the calculation of the financial statements
are as follows:

1. Sales is expected to increase by 10% each year.

2. Cost of goods sold is expected to increase by 10%.
3. Out of total capital 30% is financed by equity and 70% is financed by loan.
4. Salary are expected to increase by 10% each year.
5. Rent expenses is expected to increases by 10%.
6. Electricity expenses are expected to increase by 5%.
7. Telephone and water expenses are expected to increase by 10%.
8. Rate of interest is assumed to be 12% in Long term loan and 12% in short term
loanannually.
9. Depreciation on furniture, electronic, inverter and kitchen utensils is expected to be 25%.
10. Depreciation on books is expected to be 15%.
11. Tax rate is assumed to be 25% each year.
12. Preliminary expenses will be written off by 20%.
13. Dividend is assumed to be distributed 30%.
14. Present Value Interest Factor is assumed to be 12%.

50
8.2 Start Up Expenses and Investment

S.No. Fixed Assets Amount (Rs.)

1
Refrigerator 70,000.00
2
Coffee Machines 200,000.00
3
Blenders 10,000.00
4
Microwave Oven 20,000.00
5
Inverter 100,000.00
6
Counter Shelf 50,000.00
7
Table/Chair/Furnishing 450,000.00
8
Wifi router 6,000.00
9
Telephone set 2,000.00
10
Computer 50,000.00
11
Kitchen Utensils 200,000.00
12
Books 10,000.00
13
Storage Shelf 10,000.00

1,178,000.00

Table 2: Start Up expenses

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S.No. Particulars Amount (Rs.)
1
Registration Fee 15,000.00
2
Telephone installation 10,000.00
3
Sound proof cabin 200,000.00
4
Interior Design Decoration 200,000.00
5 Menu Card/ Hoarding Board Design/Business Card/
Brochure 10,000.00
6
Prepaid Rent 140,000.00

Total 575,000.00

Table 3: Preliminary expenses

8.3 Financial Plan and Loan Requirement

S.No. Particulars  Amount (Rs.)

1
Equity 690,000
2
Long Term Debt @ 12% pa 824,600
3
Short Term Debt @12% pa 785,400
Total
2,300,000

Table 4: Source of Investment

52
8.4 Operating Expenses

Particulars Monthly Year 1 Year 2 Year 3 Year 4 Year 5

Rent Expenses 70,000 840,000 924,000 1,016,400 1,118,040 1,229,844

Water Expenses 3,000 36,000 39,600 43,560 47,916 52,708

Electricity
Expenses 3,000 36,000 37,800 39,690 41,675 43,758
Telephone
Expenses 2,000 24,000 26,400 29,040 31,944 35,138

Internet Expense 3,000 36,000 36,000 36,000 36,000 36,000

Salary to staff 130,000 1,560,000 1,716,000 1,887,600 2,076,360 2,283,996

Cost Of Goods
Sold 78,980 947,760 1,042,536 1,146,790 1,261,469 1,387,615

 Total 289,980 3,479,760 3,822,336 4,199,080 4,613,403 5,069,060

Table 5:Operating expenses

8.5 Sales Revenue

Sales Year 1 Year 2 Year 3 Year 4 Year 5

Espresso 171,600 188,760 207,636 228,400 251,240

Iced Cappuchino 374,400 411,840 453,024 498,326 548,159

Café Latte 390,000 429,000 471,900 519,090 570,999

Iced Café Mocha 343,200 377,520 415,272 456,799 502,479

Seasonal Smoothies 468,000 514,800 566,280 622,908 685,199

Iced Coffee 287,040 315,744 347,318 382,050 420,255

Chocolate cookies 49,920 54,912 60,403 66,444 73,088

Muffins 149,760 164,736 181,210 199,331 219,264

53
Pastries 299,520 329,472 362,419 398,661 438,527

Flavoured Tea 205,920 226,512 249,163 274,080 301,487

Orea Cookies Shake 468,000 514,800 566,280 622,908 685,199

Iced Lemon Tea 212,160 233,376 256,714 282,385 310,623

Vanilla Mocha 429,000 471,900 519,090 570,999 628,099

Hot Chocolate 243,360 267,696 294,466 323,912 356,303

Americano 162,240 178,464 196,310 215,941 237,536

Total 4,254,120 4,679,532 5,147,485 5,662,234 6,228,457

Table 6: Sales revenue

8.6 Income Statement

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Sales Revenue 4,254,120 4,679,532 5,147,485 5,662,234 6,228,457

Less:- Cost of Goods Sold 947,760 1,042,536 1,146,790 1,261,469 1,387,615

Gross Profit 3,306,360 3,636,996 4,000,696 4,400,765 4,840,842

Less:- Operating Expenses

Rent Expenses 700,000 924,000 1,016,400 1,118,040 1,229,844

Water Expenses 36,000 39,600 43,560 47,916 52,708

Electricity Expenses 36,000 37,800 39,690 41,675 43,758

Telephone Expenses 24,000 26,400 29,040 31,944 35,138

Internet Expense 36,000 36,000 36,000 36,000 36,000

Salary to staff 1,560,000 1,716,000 1,887,600 2,076,360 2,283,996

Total Operating Expenses 2,392,000 2,779,800 3,052,290 3,351,935 3,681,444

54
Operating Profit 914,360 857,196 948,406 1,048,831 1,159,397
Less:-Non-Operating
Expenses
Preliminary Expenses Written
off 115,000 115,000 115,000 115,000 115,000

Depreciation Expense 293,500 220,275 165,334 124,109 93,174

Total Non-Operating
Expenses 408,500 335,275 280,334 239,109 208,174

EBIT 505,860 521,921 668,072 809,722 951,224

Interest on Short term loan 94,248 - - - -

Less: Interest on Long term
Loan 93,317 77,203 59,067 38,654 15,680

EBT 318,295 444,718 609,005 771,067 935,544

Less :Tax@25% 79,574 111,179 152,251 192,767 233,886

Net Income / EAT 238,721 333,538 456,754 578,301 701,658

Beginning Retained Earning 0 167,105 400,582 720,309 1,125,120

Less: Dividend 71,616 100,062 137,026 173,490 210,497

Closing retained earning 167,105 400,582 720,309 1,125,120 1,616,280

Table 7: Income Statement

8.7 Cash Flow Statement

Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash from operating activities

Net Income - 238,721 333,538 456,754 578,301 701,658

Add: Depriciation - 293,500 220,275 165,334 124,109 93,174

-
Add: Written off preliminary expenses 575,000 115,000 115,000 115,000 115,000 115,000

Add: Increase in accounts payable - 112,152 (6,160) 10,599 11,659 12,825

55
Less: Increase in inventory - 173,756 17,376 19,113 21,024 23,127

Less: Increase in accounts receivable - 141,804 14,180 15,598 17,158 18,874

Net cash flow from operating -
activities 575,000 443,813 631,097 712,975 790,886 880,655

Cash Flow from Investing activities

Purchase of furnitures and fixtures 510,000 - - - - -

Purchase of utilities 200,000 - - - - -

Purchase of Electronics 358,000 - - - - -

Inverter 100,000 - - - - -

Purchase of Books 10,000

Net cash flow from investing
activities 1,178,000 - - - - -

Cash flow from Financing Activities

Equity 690,000 - - - - -

Long term Loan 824,600 (128,387) (144,501) (162,637) (183,050) (206,024)

Working Capital Loan 785,400 (785,400)

Dividend Paid - 71,616 100,062 137,026 173,490 210,497

Net cash flow from financing

activities 2,300,000 (985,404) (244,563) (299,663) (356,540) (416,521)

Net Cash Flow 547,000 (541,591) 386,534 413,311 434,346 464,134

Add: Opening balance of cash - 547,000 5,409 391,943 805,255 1,239,601

Closing balance of cash 547,000 5,409 391,943 805,255 1,239,601 1,703,734

Table 8: Cah Flow Statement

56
8.8 Balance Sheet

Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
CURRENT ASSETS

Cash in hand 547,000 5,409 391,943 805,255 1,239,601 1,703,734

A/c Receivables - 141,804 155,984 171,583 188,741 207,615

Inventories - 173,756 191,132 210,245 231,269 254,396

NET FIXED ASSETS 1,178,000 884,500 664,225 498,891 374,783 281,609

Unamortized Preliminary
Expenses 575,000 460,000 345,000 230,000 115,000 -

TOTAL ASSETS 2,300,000 1,665,469 1,748,284 1,915,974 2,149,393 2,447,355

LIABILITIES AND
EQUITY

Equity 690,000 690,000 690,000 690,000 690,000 690,000

Retained Earning - 167,105 400,582 720,309 1,125,120 1,616,280

Long Term Loan 824,600 696,213 551,711 389,074 206,024 0

CURRENT LIABILITIES

Short Term Loan 785,400 -

A/c Payable - 112,152 105,991 116,590 128,249 141,074

TOTAL LIABILITIES
AND EQUITY 2,300,000 1,665,469 1,748,284 1,915,974 2,149,393 2,447,355

Table 9: Balance Sheet

57
8.9 Investment Appraisal

Year CFAT Cum CFAT

-
0 - 2,300,000.40 2,300,000.40
-
1 647,221.34 1,652,779.06
-
2 668,813.44 983,965.62
-
3 737,087.45 246,878.17

4 817,409.30 570,531.14

5 909,831.40 1,480,362.54
Cost of Capital 12%
NPV 331,639
IRR 17.94%
Payback Period 3.37years

Table 10: Investment Appraisal

8.10Key Financial Indicators

LIQUIDITY RATIO
Ratios year 1 year 2 year 3 year 4 year 5
Current Ratio 2.86 6.97 10.18 12.94 15.35
Quick test ratio 1.31 5.17 8.38 11.14 13.55
ASSET MANAGEMENT RATIO
Fixed Assets Turnover 4.81 7.05 10.32 15.11 22.12
Total Assets Turnover 2.55 2.68 2.69 2.63 2.54
DEBT MANAGEMENT
Total debt to total assets 0.42 0.32 0.20 0.10 0.00
Total asset to total equity 1.21 1.27 1.39 1.56 1.77
Total asset to total liabilities 2.06 2.66 3.79 6.43 17.35
Debt service coverage ratio 2.28 2.35 3.01 3.65 4.29

58
Interest Coverage ratio 2.70 6.76 11.31 20.95 60.66
PROFITABILITY RATIO
78% 78% 78% 78% 78%
Gross margin
21% 18% 18% 19% 19%
Operating Profit margin
6% 7% 9% 10% 11%
Net profit margin
27% 50% 92% 154% 249%
return on fixed assets
10% 20% 26% 30% 33%
Return on total assets (ROA)
10% 15% 20% 25% 31%
return on investment (ROI)
Return on common equity 28% 31% 32% 32% 30%
(ROE)
21147 20539 19838 19300 18878
BEP in Units

3,844,586.3 4,363,910.4
BEP Rs. 6 4,107,336.78 9 4,670,141.63 5,024,742.09

Table 11: Key Financial Indicators

59
Chapter 9

Risk and contingency plan

9.1 Key Risks in the business and Risk Management Plan:

Key Risks in the business

Every business involves some kind of unfavorable uncertainties which can be termed as risks.
But the business should analyze and address such risks in order to do better in the market.

Internal risk:

 Delay in the process of registration and legalities involved.

 Lack of experience staffs.
 Problems in coordinating with vendors.
 Lack of organizing management.

External risks:

 Political instability may arise of strikes etc.

 Disputes with various vendors and suppliers.

Risk Management Plan

 Identifying employees with clear responsibilities for different areas.

 Providing training for the hired staffs.
 Maintaining the facilities and equipment.
 Being proactive and avoid situations with overt political risk.
 Building good relations with current suppliers representatives.

9.2 Contingency Plan and Exit Plan:

60
Our overall goal is to make Chapter Coffee one of the most reputed coffee shop in the town.
Based on the projection the business will capture the market share at the end of year 2. With the
increase in sale and profit from second year, the manager will add some additional features in the
coffee shop. Chapter Coffee will have a plan to stay focused and will be a successful larger
venue with greater sales capacity and revenue potential. And at the end of year 5 the company
will expand its business at different parts of the Kathmandu valley.

Exist Strategy

In the event that things don’t go well or some unavoidable circumstance develops, an exit
strategy can be useful to save oneself from getting back the investment and some savings, and to
provide oneself with some support until another business plan can be implemented. Some of the
exit strategies that can be used are:

1. Merger& Acquisition (M&A): This normally means merging with a similar company, or
being bought by a larger company. This is a win-win situation when bordering companies have
complementary skills, and can save resources by combining. For bigger companies, it’s a more
efficient and quicker way to grow their revenue than creating new products organically.

2. Sell to a friend: This is not an M&A, since it is not combining two entities into one. Yet it’s a
great way to “cash out” so that we can pay investors, pay one, take some time off, and start up all
over again. The ideal buyer is someone who has more skills and interest on the operational side
of the business, and can scale it.

3. Make someone else run it: If the business is stable with secure marketplace, a steady revenue
stream, investments can be paid off, and we can find someone trust worthy to run the company,
while one can use the remaining cash to develop the next great idea. The ownership is retained
with the annuity.

4. Liquidation and close: Even lifetime entrepreneurs can decide that enough is enough. One
often-overlooked exit strategy is simply to shutdown, close the business doors, and liquidate.
There may be a natural catastrophe, or the market that was counted upon could implode. Rules
have to be made up front so that these situations can be managed if necessary.

61
APPENDIX

62
ANNEX 1-Job Description

Manager

Qualifications

This position has not been filled. The requirements of the position require 5years experience in
cafe, at least 2 of those years in some type of supervisory position. A bachelor's degree in hotel
management is preferable. The candidate for this position will be required to submit a resume
and verifiable references. The candidate will be interviewed and hired by the proprietor.

Job Description

The Manager will report directly to the owner. Responsible for the overall management of the
staff. The candidate will work in conjunction with the owner in ordering supplies, handling
customer complaints and scheduling staff. Other duties would include ensuring staff coverage for
all shifts and reports to the owner.

Accountant:

Qualification:

Minimum 3 years of experiences in reporting andgeneral math skills. At least bachelor degree in
accounting. Higher degree is always preferred.Thorough knowledge of accounting and corporate
finance principles and procedures.Proven working experience as a cost accountant or in
a relevant field.

Job Description

Prepare, examine, and analyze accounting records, financial statements, and other financial
reports to assess accuracy, completeness, and conformance to reporting and procedural
standard.Managing all accounting operations based on accounting principles. Preparing budget
and financial forecasts. Keep very careful, comprehensive monetary records.Record all

63
transactions, organize receipts and purchase orders, and ensure that bills are paid in a timely
manner.

Baristas

Qualification

The baristas must have a minimum of 3years experience. The candidate must have at a minimum
intermediate or bachelors with training relevant field. The baristas will submit a resume and fill
out an application. They will be interviewed and hired by the owner and manager.

Job Description

The Baristasis responsible for making coffee in the cafe. Their responsibility is to see that the
kitchen is kept in a clean, sanitary and working order. They oversee and train the assistant
baristas.

Waiter

Qualification

The waiter must have a minimum of attending school or a training program and one year's
experience working in a coffee shop. Must possess a friendly and outgoing personality and have
good personal hygiene.Will be required to submit an application. Will be interviewed and hired
by the manager.

Job Description

The waiter is responsible for waiting on tables, taking the customer’s orders. They are
responsible for helping to keep the serving area and the customer area clean and sanitary. They
are responsible for helping the barista keep the service area stocked. At the end of their shift,
they will be required to complete all side work as assigned.

Storekeeper

64
Qualification

The storekeeper must have at a minimum of a high school and one year of experience in
storekeeping, inventory control, or recordkeeping.Will be required to submit an application. Will
be interviewed and hired by the manager.

Job Description

The storekeeper is responsible for knowledge of proper book-keeping and inventory

management. Familiarity with standard concepts and best practices in a stockroom.Physical
ability to frequently lift and carry materials.

Cleaner

Qualification

The cleaner must have simple knowledge of reading and writing skills and one year of proven
working experience as a cleaner.

Job Description

The cleaner is responsible for clean stock and supply designated facility areas (dusting,
sweeping, vacuuming, mopping, cleaning utensils, restroom etc). Carry out any other reasonable
duties within the overall function of the job.

ANNEX 2-Sales revenue

Items Selling average expected expected Expected

65
 Annual
expected daily monthly monthly Revenue
price sales sales revenue (Year 1)

Espresso 110 5 130 14,300 171,600

Iced Cappuchino 200 6 156 31,200 374,400

Café Latte 250 5 130 32,500 390,000

Iced Café Mocha 275 4 104 28,600 343,200

Blended Mocha 250 6 156 39,000 468,000

Iced Coffee 230 4 104 23,920 287,040

Chocolate cookies 40 4 104 4,160 49,920

Muffins 80 6 156 12,480 149,760

Pastries 160 6 156 24,960 299,520

Flavoured Tea 110 6 156 17,160 205,920

Oreo Cookies
Shake 250 6 156 39,000 468,000

Iced Lemon Tea 170 4 104 17,680 212,160

Vanilla Mocha 275 5 130 35,750 429,000

Hot Chocolate 195 4 104 20,280 243,360

Americano 130 4 104 13,520 162,240

Total 2725 75 1950 354510 4,254,120

ANNEX 3- Direct Material cost

Particulars Quantity Rate Amount

Coffee 6 850 5,100
Cream 10 300 3,000
Milk 25 70 1,750
Tea Bags 1 150 150

66
Sugar 5 75 375
Chocolate Powder 5 250 1,250
Chocolate Cookies 25 30 750
Muffins 25 60 1,500
Pastries 25 130 3,250
Disposable Coffee Cup 24 5 120
Cocoa powder 5 500 2,500
Total weekly requirement 19,745
Total monthly requirement 78,980
Total annual requirement 947,760

Direct Material Cost

Year 1 947,760
Year 2 1,042,536
Year 3 1,146,790
Year 4 1,261,469
Year 5 1,387,615
Year 6 1,526,377

ANNEX 4- Salary Structure

Monthly
Salary Staff no. Rate total Annual

waiter 3 12,000.00 36,000.00 432,000.00

Accountant 1 18,000.00 18,000.00 216,000.00

Manager 1 30,000.00 30,000.00 360,000.00

Baristas 2 15,000.00 30,000.00 360,000.00

Storekeeper 1 9,000.00 9,000.00 108,000.00

Cleaner 1 7,000.00 7,000.00 84,000.00

 Total  9  91000

67
 130,000.00 1,560,000.00

ANNEX 5- Initial Schedule

Furniture and Equipment

S.No. Particular Rate No. Total

1 Table 13500 10 135000

2 Chair 7000 45 315000

3 Book Shelf 10000 1 10000

4 Counter Shelf 40000 1 40000

5 Storage Shelf 5000 2 10000

510000
Total
Electronics
S.No. Particular Rate No. Total

1 Refrigerator 70000 1 70000

2 Coffee Machines 100000 2 200000

3 Blenders 10000 1 10000

4 Microwave oven 20000 1 20000

68
5 Telephone Set 2000 1 2000

6 3000 2 6000
WIFI Router

7 50000 1 50000
Computer
Total 358000

Remaining Acc
Year Total Amount Rate Depreciation Amount depreciation
0 0
1 358,000 0.25 89500 268500 89500
2 268,500 0.25 67125 201375 156625
3 201,375 0.25 50343.75 151031.25 206968.75
4 151,031 0.25 37758 113273 244727
5 113,273 0.25 28318 84955 273045

Depreciation of Furnitures and fixtures

Depreciatio Remaining Acc

Year Total Amount Rate n Amount depreciation
0 0
1 510,000.00 0.25 127500 382500 127500
2 382500 0.25 95625 286875 223125
3 286875 0.25 71719 215156 294844
4 215156 0.25 53789 161367 348633
5 161367 0.25 40342 121025 388975

Depreciation of Inverter

Depreciatio Remaining Acc

Year Total Amount Rate n Amount depreciation
0 0
1 100,000.00 0.25 25000 75000 25000

69
 2 75000 0.25 18750 56250 43750
3 56250 0.25 14063 42188 57813
4 42188 0.25 10547 31641 68359
5 31641 0.25 7910 23730 76270

Depreciation of Kitchen Utensils

Depreciatio Remaining Acc

Year Total Amount Rate n Amount depreciation
0 0
1 200,000.00 0.25 50000 150000 50000
2 150000 0.25 37500 112500 87500
3 112500 0.25 28125 84375 115625
4 84375 0.25 21094 63281 136719
5 63281 0.25 15820 47461 152539

Depreciation of Books

Remaining Acc
Year Total Amount Rate Depreciation Amount depreciation
0 0
1 10,000 0.15 1500 8500 1500
2 8500 0.15 1275 7225 2775
3 7225 0.15 1084 6141 3859
4 6141 0.15 921 5220 4780
5 5220 0.15 783 4437 5563

ANNEX 7- Long term loan Amortization

Opening Principal Closing Yearly Yearly

Balance Installment Interest Repayment Balance Interest Principle
Year 0:
Quarter 1 824,600 55,426 24,738 30,688 793,912 93,317 128,387 $55,426.07

Quarter 2 793,912 55,426 23,817 31,609 762,303

Quarter 3 762,303 55,426 22,869 32,557 729,746

70
Quarter 4 729,746 55,426 21,892 33,534 696,213 696,213
Year 1:
Quarter 1 696,213 55,426 20,886 34,540 661,673 77,203 144,501

Quarter 2 661,673 55,426 19,850 35,576 626,097

Quarter 3 626,097 55,426 18,783 36,643 589,454

Quarter 4 589,454 55,426 17,684 37,742 551,711 551,711

Year 2:
Quarter 1 551,711 55,426 16,551 38,875 512,837 59,067 162,637

Quarter 2 512,837 55,426 15,385 40,041 472,796

Quarter 3 472,796 55,426 14,184 41,242 431,553

Quarter 4 431,553 55,426 12,947 42,479 389,074 389,074

Year 3:
Quarter 1 389,074 55,426 11,672 43,754 345,320 38,654 183,050

Quarter 2 345,320 55,426 10,360 45,066 300,254

Quarter 3 300,254 55,426 9,008 46,418 253,835

Quarter 4 253,835 55,426 7,615 47,811 206,024 206,024

Year 4:
Quarter 1 206,024 55,426 6,181 49,245 156,779 15,680 206,024

Quarter 2 156,779 55,426 4,703 50,723 106,056

Quarter 3 106,056 55,426 3,182 52,244 53,812

Quarter 4 53,812 55,426 1,614 53,812 0 0

ANNEX 8- Short term loan Amortization

Opening
Year Balance Interest payment

Year 1 785,400.28 94,248.03

ANNEX 9- Sound proof cabin

71
S. No. Particulars Sq.ft Rate Amount
1 Fix window 77 427 98637
2 Sliding door 49 514 100744
3 Transportation 620
Total 200,000

ANNEX 10- Capital structure

Source of fund Shareholders

Hem Ghimire 652050
Equity (70%)
652050
Pravash Dhar Sharma
Total Equity 1304100
Loan(30%) 558900
 Total Capital Structure 1863000

72
References

https://www.bplans.com/coffee

http://kathmandupost.ekantipur.com/news/2013-04-14/burgeoning-coffee-shops-are-changing-
the-drinking-habits-of-nepalis-369960.html

http://smallbusiness.chron.com/coffee-shop-marketing-strategies-10413.html

https://www.bplans.com/coffee_shop_business_plan/executive_summary_fc.php

http://www.bplans.co.uk/coffee_shop_business_plan/company_summary_fc.cfm

https://www.slideshare.net/amolkadu31/business-plan-coffee-shop

http://www.teacoffee.gov.np/en/

http://hamrobazaar.com/c199-business-and-industrial-office-furniture-and-fixtures

https://www.eastrockawaylibrary.org/wp-content/uploads/2020-Vision-Plan.pdf

https://www.quora.com/When-starting-a-coffee-shop-what-are-the-major-risks-to-look-out-for

http://www.soundproofcow.com/soundproof-a-space-restaurant-office/restaurant-soundproofing/

http://www.ccscoffee.com/vision-mission-values/

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74